Retiree Pass Benefit's

[does this plane go to paris]

Doing some research and would appreciate any information.

Currently facing retirement and my employeer will provide free travel for employee and spouse. Committed partner is offered but the committed partner will need to pay any tax associated with the pass. Does AA cover the tax on committed partner's? Thanx for any help

 

[Veritas]

Does AA cover the tax on committed partner's? Thanx for any help

Yes. AA and your employer are simply following the IRS regulations.

 

[Flyboy4u]

Yes. AA and your employer are simply following the IRS regulations.

Unless you, and your comitted partner are Gay! If that is the case, yes AA offers the partner "benefits", but if the Federal/State law is envolved and, as we all know, doesn't recognize domestic partners of the " Same Sex". Then you are reliable for all aplicable charges.

 

[AirLUVer]

even if you are of opposite sex and considered commonlaw married, you still have to pay tax

 

[Flyboy4u]

You may be correct on that one but I do believe the laws on common law marriages vary from state to state.

 

[jimntx]

You may be correct on that one but I do believe the laws on common law marriages vary from state to state.

It's not a question of state laws at all. We're talking IRS regulations. If you are not "legally married"--and the Feds only recognize legal marriages (common law or otherwise) between a man and a woman--taxes apply.

My sister is my registered companion since my wife died several years before I started work at AA. I have to pay the "imputed income" tax on the "fair market value" of every non-rev trip she makes. If you will go to Jetnet, Travel, Trip Book, Travel Service Charges, Imputed Income, you will find not only the rule, but the formula for calculating the imputed income tax. The rule is...

"Non-revenue travel for spouses, dependent children, and parents are not considered taxable income for you. However, travel by Domestic Partner (DP), extended family, and friends generally is taxable and therefore generates imputed income when the service charges are less than the fair market value of the trip. Service charges and fair market values ("trip values") are shown in Sabre "WR" pricing entry and in the Jetnet Travel Planner's "NRSA Charges" section.

And, only D1/D2 travel by Domestic Partner or Registered Companion are considered "not fair market value." All D3 charges are considered fair market value.

Note: Domestic Partner, see also Gay Couple, or Straight couple "living in sin."

 

[Bob Owens]

It's not a question of state laws at all. We're talking IRS regulations. If you are not "legally married"--and the Feds only recognize legal marriages (common law or otherwise) between a man and a woman--taxes apply.

My sister is my registered companion since my wife died several years before I started work at AA. I have to pay the "imputed income" tax on the "fair market value" of every non-rev trip she makes. If you will go to Jetnet, Travel, Trip Book, Travel Service Charges, Imputed Income, you will find not only the rule, but the formula for calculating the imputed income tax. The rule is...

"Non-revenue travel for spouses, dependent children, and parents are not considered taxable income for you. However, travel by Domestic Partner (DP), extended family, and friends generally is taxable and therefore generates imputed income when the service charges are less than the fair market value of the trip. Service charges and fair market values ("trip values") are shown in Sabre "WR" pricing entry and in the Jetnet Travel Planner's "NRSA Charges" section.

And, only D1/D2 travel by Domestic Partner or Registered Companion are considered "not fair market value." All D3 charges are considered fair market value.

Note: Domestic Partner, see also Gay Couple, or Straight couple "living in sin."

So whats the fair market value when the person in the next seat is flying on "miles"?

 

[eolesen]

Depends. No airline dares to put a dollar value on miles lest the IRS start taxing them.

A 25K domestic award typically covers a $350 fare, and a 35K Hawaii award covers a $900 fare, so that works out to between $0.015 and $0.025 per mile redeemed.

The lowest I've paid for coach travel in the past two years is $0.15/mile flown/awarded, the lowest I've paid for business class is $0.39/mile flown/awarded. Some legs have been as high as $1/mile flown/awarded.

Even if you subtract the full $0.025/mile from the fares paid, it's still a pretty good deal for AA.